Teleflex (NYSE:TFX) today posted first-quarter results that beat the Wall Street consensus forecast and announced business streamlining plans for 2021.
The Wayne, Pa.–based maker of critical care and surgical products reported earnings of $74.9 million, or $1.58 per share, off sales of $633.9 million for the quarter ended March 31, 2021, for a –43% bottom-line drop on top-line growth of 0.5%.
Adjusted to exclude one-time items, earnings per share were $2.87, 45¢ ahead of The Street, where analysts were looking EPS of $2.42 on sales of $626.25 million.
“The first quarter of 2021 was a strong start to the year for Teleflex, one in which we exceeded our expectations for revenue, led by the performance of the Americas and Asia,” Teleflex CEO Liam Kelly said in a news release.
“In addition to strong first-quarter top-line performance, we generated the highest adjusted gross and operating margins since becoming a pure-play medical device company, resulting in an adjusted earnings per share amount of $2.87, which also exceeded expectations,” Kelly added.
Teleflex announced that it is committed to a restructuring plan to streamline business functions across segments. Expected aggregate pre-tax restructuring charges are in the $7–$9 million range, consisting primarily of termination benefits. There will be an additional $4 million in restructuring-related charges, mostly recognized in cost of sales. Teleflex expects to complete the restructuring by the end of 2021, with annual pre-tax savings of $13–$16 million after implementation.
A Teleflex spokesperson did not immediately answer a request for comment on how the restructuring will affect headcount.
The company raised its full-year 2021 GAAP revenue growth estimates from 10.0% and 11.5% to a range of between 10.5% and 11.75% over the year prior. It raised its full-year revenue growth estimates from 8.0% and 9.5% to 8.5% and 9.75% over 2020.
Shares in TFX were down -4.89% to $422.13 apiece in mid-morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, is down slightly.
